Currently I am experiencing game breaking bug where in every level after sometime casting spells and their visuals don't work anymore and creatures don't damage each other. is there a fix to this issue?

You've reached the 'thing limit'. There's more stuff than the game can handle, so it simply does not create the spells. To work around this, get rid of stuff. Sell rooms, traps, consolidate gold piles, make smaller hatcheries, kill units.